Sibanye Gold Swings to 1st Half Net Loss on Strike Costs, Restructuring Expenses
August 29 2019 - 8:59AM
Dow Jones News
By Oliver Griffin
Sibanye Gold Ltd. (SGL.JO) on Thursday reported a swing to a net
loss in the first half of 2019, which it attributed to costs
associated with strike action and other restructuring expenses at
its South Africa gold operations.
The mining company--which has traded as Sibanye-Stillwater Ltd.
(SBGL) since it bought U.S. company Stillwater Mining Co.--booked a
loss of 265.2 million rand ($17.3 million) for the six months ended
June 30, compared with a net profit of ZAR76.7 million in the
year-earlier period.
The company booked costs of ZAR375 million associated with the
strikes and other restructuring costs of ZAR386 million at its gold
operations.
Sibanye said its revenue for the first half of the year fell
1.6% to ZAR23.53 billion.
The company's adjusted earnings before interest, taxes,
depreciation and amortization fell to ZAR2.1 billion, from ZAR3.9
billion in the year-earlier period. However, it said it expects a
significant increase in adjusted Ebitda in the second half of the
year as operations stabilize.
Sibanye Gold said it has cut its U.S. 2E platinum-group metals
production guidance outlook for the year to a range of 625,000 to
640,000 ounces. Metals in the 2E group include platinum and
palladium.
Gold production for the full year is now seen in a range of
771,617 ounces to 803,768 ounces, the company said. Guidance for
platinum-group metal production in South Africa was unchanged.
Write to Oliver Griffin at oliver.griffin@dowjones.com;
@OliGGriffin
(END) Dow Jones Newswires
August 29, 2019 08:44 ET (12:44 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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